A stupid question but I'll ask anyway..

I think the answer is obvious but I'll ask anyway..

In NSW if I buy a property that has major illegal works done to it I can't exactly sue the vendor for a refund after settlement can I?

Next question. Title Insurance, is it worthwhile getting to protect from the above just in case?


-Frank

 

No, you can't sue the vendor as you are buying knowing of the illegal works.

Likewise, insurance covers you for unknown events. I doubt you can buy a property, obviously discounted because of the known problems, then expect insurance to rectify them.

As always, get professional advice.
Marg

 

No you just offer significantly less with the plan to come out ahead after rectification works.

Sounds like a good strategy

 

What if I don't know about the illegal works and the vendor lied and said that there are none on the contract? After settlement am I then screwed? This is what I mean..

Can't a seller lie and say there are no illegal works and then sell? Where does the buyer stand in this case after settlement and funds transferred to vendor and property transferred into my name?

The question is say a month after I buy can I sue the vendor and get my money back? I'm talking after settlement not after contract exchanged.


-Frank

 

Buyer should do their own research.
You wouldn't buy a car without starting it just because the seller said it runs fine
(I probably would but I'm very trusting)

 

Have you bought a prospective lemon?

 

No not at all I'm just curious as to the legalities of this as I am in the market to buy a home. I just want to cover all angles thats all so that I know where I stand if I do end up buying a property and owning it and then 1 year later submit an application to renovate and then find out that there has already been renovations done illegally.

I know I'm just making up a scenario here but you never know.. If that were to happen can I go back to the owner and say hey, you lied on the contract I want my money back. Or at least get him to come good with financing whatever needs to be done to get the illegal works approved. ?

-Frank

 

Wouldn't you pay the fee to council to get this checked before you buy?

 

All this can be checked by your solicitor during the conveyancing process. If you choose not to pay for the necessary checks then you have only yourself to blame.

Marg

 

I usually give it a little squeeze, release some of the oils under the skin, feel for weight/content, colour, firmness, ripeness.

 

a lot of councils are quite good now with online info available so you can find a list of DA applications and details of work applied for and usually plans of some kind

once you buy you inherit the issues. best to be ahead of any potential issues, or make an offer with a worst case scenario

 

If your not a builder then it may be very hard to tell if there is any work done illegally within the buildings footprint..And what one is obliged to do and what they are responsible for are very different in real estate,but i know that insurance companies have photos inside and outside on most properties who have made claims--and so do the local councils,start with the council then the insurance..

 

The major issue with illegal works is getting compliance. ie inspecting footings, plumbing etc If there is no compliance then what is hidden ? eg Is there some of the inifinity cable in the walls ? Was the AC installed by a unlicensed tradie and so its not subject to warranty ?

When buying a council search will show any DAs. Site inspection should indicate if they occurred (ie a extra bedroom, GF etc). Even Google Maps. Sometimes you can find a DA that is approved but did not proceed eg a pool. Ignore it.

A DA and a finished product doesnt make a place compliant. eg a pool. The pool fencing may now not comply. But a site inspect that finds a pool and there is no DA and no fence certainly indicates the owner would need to make good the defect and the cost needs to be ascertained.

 

If u buy privately u can request this information however if u buy in auction it is really as is.

Suing someone is easier said then actually doing it after 1 year not sure how u can accomplish this
First u need to track the owner then u need to get a lawyer which really is only practical for larger amounts.

You should do ur due diligence at the time of purchase or before settlement